Saturday, February 15, 2025

Nigeria Caps Telecom Tariff Hike at 60%, Rejects 100% Demand by Operators

Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that the government will not approve a 100% increase in telecom tariffs, despite operators’ demands. Speaking on Channels TV, Tijani emphasized that any tariff adjustment should remain between 30% and 60% to protect consumers and ensure industry sustainability.

“This sector drives growth in our country. Allowing a 100% hike would harm Nigerians,” Tijani stated. The minister highlighted ongoing government efforts to alleviate the financial strain on telecom operators while safeguarding the public from excessive costs.

Balancing Industry Needs with Consumer Protection

Telecom operators argue that skyrocketing operational costs, driven by inflation, foreign exchange devaluation, and surging diesel prices, necessitate a substantial tariff review. Diesel costs have soared from ₦230 pre-COVID to over ₦1,000 per liter, while the exchange rate has jumped from ₦424.50 to ₦1,550 in 2024.

Karl Toriola, CEO of MTN Nigeria, described the current situation as a “sustainability threat” for the sector. “Without a sustainable industry, the economy and Nigerians’ well-being will suffer,” Toriola warned, adding that costs for critical infrastructure have quadrupled in two years.

Government Interventions to Ease Operator Burdens

The government has declared all telecom infrastructure as critical national assets, a longstanding demand from operators. This move aims to curb vandalism, which has significantly impacted service quality and operational costs.

Additionally, the administration is investing in telecom infrastructure, including a 90,000-kilometer fiber optic expansion project and towers in rural areas. “This investment allows operators to reach more people without shouldering the full financial burden,” Tijani said.

To further support the sector, the government is harmonizing multiple taxes imposed on telecom companies. Tijani stressed that reducing reliance on costly imports and boosting local content would lower operators’ foreign exchange requirements.

Affordable Data vs. Economic Realities

Nigeria offers some of Africa’s lowest telecom tariffs, with 2GB of data priced at $2.35, compared to $7.98 in South Africa, according to the ITU. However, Nigeria also has the lowest GDP per capita among countries like Ghana, Kenya, and South Africa, raising concerns about consumers’ ability to afford even modest tariff increases.

While the Nigerian Communications Commission (NCC) has yet to announce the exact percentage hike, Tijani reassured Nigerians that any adjustment would be carefully calculated. “We are asking tough questions to ensure sustainability without placing undue hardship on citizens,” he said.

Hot this week

How Nigeria Spends ₦407 Billion on Fuel Imports in 12 Days

Nigeria's state-owned oil firm, the Nigerian National Petroleum Company...

Energy Independence: How Dangote Group Generates 1,540 MW for Its Operations

The Dangote Group, led by billionaire industrialist Aliko Dangote,...

From Energy to Education: African Startups Raise $289 Million in a Record January

African startups began 2025 on a high note, securing...

Standing for Truth in a World of Deception – Mark Idiahi

In a generation where moral relativism and "wokeness" are...

Tinubu Joins African Union Summit to Push for Reparatory Justice, Economic Development

President Bola Ahmed Tinubu arrived in Addis Ababa, Ethiopia,...

Kenya’s Rose Exports Wither Under Pests, EU Regulations

Kenya's $1 billion flower export industry, a lifeline for...

How Nigeria Spends ₦407 Billion on Fuel Imports in 12 Days

Nigeria's state-owned oil firm, the Nigerian National Petroleum Company...

Tinubu Joins African Union Summit to Push for Reparatory Justice, Economic Development

President Bola Ahmed Tinubu arrived in Addis Ababa, Ethiopia,...

NUC Tightens Rules for Private University Licensing with 14-Step Approval Process

Nigeria's National Universities Commission (NUC) has introduced a comprehensive...

MTN Hikes Data Prices as NCC Approves 50% Tariff Increase

MTN Nigeria has raised its data subscription prices following...

Ghana Targets Payroll Corruption With Probe Into 81,000 ‘Ghost Names

Ghana’s government has launched an investigation into 81,000 suspected...

Nigeria Halts Implementation of 4% FOB Charge to Refine Customs Framework

The Nigerian government has suspended the implementation of a...

Nigeria’s Dangote Refinery Reduces Diesel Prices for the Third Time Since Launch

The Dangote Petroleum Refinery has cut the gantry price...

Related Articles

Popular Categories